REFILE-MORNING BID-Main stage: earnings – sideshow: Fed

(Removes extraneous word in para 2, fixes typo in para 11)

April 27 – A look at the day ahead from Julien Ponthus.

Three central bank meetings but it’s the huge wave of corporate earnings that’s grabbing all the attention.

Policy status quo is expected at the U.S. Federal Reserve which starts its two-day meeting today, while Japan’s central bank made few waves as it maintained its massive stimulus and projected inflation would miss its 2% target for years .

Little news expected from Sweden’s central bank either.

Meanwhile the earnings torrent so far vindicates the stock market bulls who are regularly accused of stampeding their way to record highs with no regard to the sustainability of the recovery.

Monday’s Wall Street session saw the S&P 500 closing at uncharted highs and the Nasdaq confirming the end of an 11% correction as growth stocks made a swift comeback, boosted, must be said, by the retreat in Treasury yields.

The benchmark 10-year Treasury yield is at 1.57%, well below the 1.77% hit at the end of March.

The S&P 500 index is heading now for its moment of truth, with companies that constitute about 40% of its market capitalization reporting from Tuesday through Thursday.

The list for Tuesday includes Microsoft, Google parent Alphabet, Starbucks and Visa. In Europe, it’s the banking sector which is in focus, with HSBC, UBS and Swedbank posting profit gains.

At the time of writing, futures both on Wall Street and across Europe are flat as heavyweights continue to unveil Q1 results, from Swiss drugmaker Novartis, UK oil major BP and Norwegian aluminium maker Norsk Hydro.

Bitcoin meanwhile rose 1.4% to $54,823 boosted by reports JPMorgan may offer a managed Bitcoin fund, recouping some recent losses fuelled by a would-be capital gains tax in the United States.

Finally ripples from the collapsed Archegos fund are being felt — UBS revealed it lost $774 million dealing with it while Japan’s Nomura slipped to its biggest quarterly net loss since 2008, with a 245.7 billion yen ($2.3 billion) Archegos-linked hit.

Key developments that should provide more direction to markets on Tuesday:

* China’s industrial profits rise as upstream firms benefit from raw materials demand

* HSBC profit rises 79%; UBS Q1 profit up 14% ; * BP profit soars on strong oil, buybacks loom

*Electric carmaker Tesla Q1 revenues marginally beat expectations

* Auction of $62-billion of seven-year U.S. Treasuries

* U.S. consumer confidence

* US earnings: GE, Invesco, Alphabet, Microsoft, Ely Lilly, Hasbro, Texas Instruments, Starbucks, Visa, Jetblue Airways

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